New Jersey: The Garden State

New Jersey is located in the north-east of the United States and is part of the mid-Atlantic states. With an area of ​​just over 22,000 km², it is the fourth smallest in the USA. Due to the nearly 9 million inhabitants but with the highest population density. According to ehuacom, the Garden State borders New York to the north, with the Hudson River acting as a natural boundary in some areas. Another river, the Delaware River, separates New Jersey from the states of Pennsylvania and Delaware to the west. The state lies on the Atlantic coast to the south and east.

The state is a magnet for international investment. 17 of the Fortune 500 companies are based here, along with 1,100 multinational companies. In addition, there are the headquarters of 225 foreign companies. If you want to get active in the North American market, New Jersey welcomes you.

The five Foreign Trade Zones are joined by an exceptional logistics and distribution infrastructure, giving you unmatched access to the market.

New Jersey Location Map

WORLD CLASS INFRASTRUCTURE

The Port of New York & New Jersey is the largest cargo port on the east coast of the USA (Port Authority of NY & NJ). A second place in the “Busiest port for imports in North America” category (Pacific Merchant Shipping Association, 2018) underscores the importance of the port. From here, your goods can easily be shipped all over the world.

With nearly 1,000 miles of freight lines, New Jersey is one of North America’s leading freight carriers. The density of railroads is the highest in the US. New Jersey has six Amtrak train stations and connects to many Amtrak routes, including the Northeast Regional Line with stops in New York City, Philadelphia, Washington DC and Boston.

A business in central New Jersey can serve more than 38 million consumers within a two-hour drive. You can reach one-third of the US population in a day’s drive. New Jersey moves people and products like no other US state.

WIRED LIKE NO ONE ELSE

The technical infrastructure of the “Garden State” also makes you sit up and take notice. 99 percent of the population have a broadband connection with 100 MBit/s or more and 68 percent have access to a fiber optic network. This makes New Jersey the “Most connected state in the US” (Broadbandnow.com, 2019).

Many of the state’s cities offer blazing-fast WiFi to support businesses that need high-speed Internet connectivity. Newark has one of the best fiber optic networks in the world, with 10 gigabits per second connectivity delivered by 26 miles of underground city fiber.

NATIONAL LEADER IN EDUCATION

Princeton University was named the best university in the country (US News & World Report’s Best Colleges, 2020). This is the tenth time in a row. But that’s not the only educational honor bestowed on New Jersey. The state also holds the best “Public School System” (Education Week, 2020). In addition, it is also the best “State for education at every level” (US News & World Report, 2021).

The local elite colleges and universities allow the talent pool to grow and offer companies, in the form of cooperation, the opportunity to conduct research under world-class conditions. New Jersey has an outstanding reputation for its programs, which adapt quickly to meet the ever-changing needs of employers. This helps companies to find and train employees. Measures include competitive employee training grants, apprenticeship training and on-the-job training programs.

INCOME TAX IN NEW JERSEY

New Jersey charges an income tax of 1.4 – 10.75% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN NEW JERSEY

New Jersey charges a 10.5% corporate income tax. In addition, federal corporation tax is payable.

NEW JERSEY SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in New Jersey

The sales tax in New Jersey is 6.625% at the state level. Municipalities or counties do not levy a sales tax.

New Jersey Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

November 1, 2018

Transactions included:

Gross receipts from tangible personal effects, certain digital products, or taxable services (enumerated services under NJSA 54:32B-3(b)) shipped to the US state, excluding sales for resale

Treatment of tax-exempt transactions:

Exempt sales – excluding sales for resale – are included in the threshold. All income from services listed and taxable under NJSA 54:32B-3(b) that is supplied to New Jersey should be included in the threshold calculation even if a service is exempt under the particular circumstances of the transaction. Exempted services are not included.

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to the current or previous calendar year

Extra information:

  • Registration Requirements: New Jersey requires a remote business to register to collect and remit New Jersey sales tax within 30 calendar days of crossing the Economic Nexus Threshold. See the Remote Seller FAQ formore information.
  • Remote sellers who only make non-taxable retail sales are required to register in New Jersey upon reaching the economic threshold, but can then request non-reportability by completing Form C-6205-ST. See the Remote Seller FAQ.
  • Information for Remote Sellers
  • NJ A4496

New Jersey Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

November 1, 2018

Economic Nexus Threshold:

More than $100,000 in gross receipts from New Jersey sales or at least 200 transactions into the US state in the current or previous calendar year. Remote sellers should include sales through a marketplace in the calculation of the threshold. Marketplace intermediaries include all sales made through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the New Jersey Division of Taxation and collect New Jersey sales tax on sales not taxed by a marketplace intermediary once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You must register and collect sales tax in New Jersey once you cross the Economic Nexus threshold.
    • You can request that you be classified for sales tax on the non-reporting basis.
  • In-State Multichannel Sellers: You must register with the New Jersey Division of Taxation and collect tax on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact the New Jersey Division of Taxation for more information.